Tag: quantity

which of the following best describes the law of demand

which of the following best describes the law of demand插图

People also ask


  • What happens to demand when supply increases?

  • Demand will increase in response to the increase in supply which drives down the price of the good. At the old equilibrium price, the quantity demanded will exceed the quantity supplied, which will cause a shortage. At the old equilibrium quantity, the price people are willing to pay for that quantity has decreased.

  • What will happen to the equilibrium price and quantity of milk?

  • Assuming all other factors remain constant, if the income of milk buyers increases, what will happen to the equilibrium price and quantity of milk? Price will increase, but we cannot determine what happens to quantity. Price will decrease and quantity will decrease. Price will increase and quantity will decrease.

  • What happens when the price of a good decreases?

  • When price decreases, the quantity demanded increases. Legal authorities regulate prices. Sellers set the price that demanders pay. Demand decreases for a normal good when incomes increase. People demand the same amount of a good no matter its price.

  • What happens to the supply curve at equilibrium?

  • At the old equilibrium price, the quantity supplied will exceed the quantity demanded, which will cause a surplus. There has been a decrease in the supply of cheese in the market for cheese, as shown here. The initial supply curve is labeled S1 and the new supply curve is labeled S2.